Hi guys,
I hope your all well.
Just though I would share a something that I have posted on my Facebook and Linkedin.
I would love your thoughts and comments.
After 5 years of experience working with numerous local and foreign investors it has led me to believe that the KEY to successfully investing in real estate in another state or country is not about the STATS or DEMOGRAPHICS of that particular area but rather the TEAM established on the ground. If the best house is bought in the best area but the property management company is INCOMPETENT money can be lost.
Also, investing should be based on the numbers in the deal and not "predictions" of capital growth. "Hoping" a property will go up in value is not a strategy. If the numbers make sense today and suit your end goal then this might be good investment to pursue further.
Too many investors get caught up on PREDICTIONS that one particular area will see more appreciation than the other. Isn’t investing in real estate about producing enough CASHFLOW so that one can quit their day job and enjoy in a lifestyle they and their loved ones desire?
Thanks for reading and have a great day.
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Your team is the foundation of a PI enterprise and you should be the keystone that locks all things together. Everything and anything can trip you up but it's almost impossible to be successful for very long without the foundation need to support your efforts. Just like a building if you put good foundations under it and aim for the best quality components you can afford then you are on the way to building a successful business.
In saying that though every structure is threatened by events beyond the control of the builder, eg; earthquakes, tsunami's tornado's, fire etc. Surviving an event requires not only good insurance but reducing risks (fire extinguisher) and construction design.
Everything is important but prioritising all these components improves your chance of success.
Hi Engelo .. long time no see .. thought I would add my two cents to that bit of wisdom.
You have to work with the whole bundle.
There is no point jetting into a burb with no experience and assuming you can rule the roost within a week.
You have to know .. the lay of the land .. the markets and customs of the people .. the laws of the land .. and the methods of doing business.
Knowing your market value for a place allows you to understand whether the property is being treated at proper market value .. or sub par pricing.
Knowing what you are able to do with the property and how quickly you can achieve your desired result is the next thing.
And your knowledge about recognising a good team as part of your support structure .. its something I always mention .. and yes .. its just as important as having a good property to begin with. If you cant service an area due to distance or time restrictions, EMPLOY SOMEONE WHO CAN.
And yes .. the numbers in the deal are what you should use to predict the value .. NOT AN OUTCOME. An outcome is what you achieve minus your cost structure to verify your purchase. Your deal is made when you purchase right .. and when you change the structure to meet your new market by adding value.
I have made money in Poland .. and I will be making money in Greece and Spain as they come back online. The real estate market is totally different .. but the same governing rules apply. Understand your legal structure .. your laws and customs .. and your pricing vs outcomes. And you can make money anywhere.
The final thing I will add to any property investment is to make sure you are in either virtual control (through voting or governing rights) or actual control .. of the invesment. Once you start having to delegate your decisions to a crowd or you lose control of a property .. then you have no means of driving the invesment in the direction you want .. or the way that will be profitable long term.
Appreciation is a trickier game to play than just cash flow. If you know your areas well and can find some niche area's transitioning or gentrifing. You can see about the same money in appreciation as you would in a year of rents. It's not "hoping" if you know how to play your cards.
How you feeling about crypto currency? Read an article about a guy that sold his summer house for crypto currency today.
I had good run with bit coins, bought $200 dollars worth at $5 last year. Sold them before Christmas when they were worth more than gold and bought a house.
I'm currently mining several types of currency, lite coin being the most profitable at the moment. Would be interesting to see when the industry would start taking crypto currencies.
I hope you don't mind me stealing your comment???
That's some good stuff mate
haha
Thanks Freck
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Hey Xdrew,
Awesome post mate
Thanks
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Thanks Kyler,
I have been very interested in Litecoin.
Shoot me a message. I would love to pick your brain on the topic.
Thanks
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
Back to the original post – I fully agree, you need to have team in place, and invest time in finding and nurting said team.
I’ve bought a number of properties in NZ, and whilst it’s not particularly “foreign” to an Aussie, you need to have :
Accountant
Solicitor
Bank Manager
Property Managerall in your sights and on the same page.
My ongoing relationship with my current property manager has allowed me to avoid pitfalls that would no doubt have been taking cash right out of my pocket.Dwight
Cashflow Positive Investor
Back to the original post – I fully agree, you need to have team in place, and invest time in finding and nurting said team.
I’ve bought a number of properties in NZ, and whilst it’s not particularly “foreign” to an Aussie, you need to have :
Accountant
Solicitor
Bank Manager
Property Managerall in your sights and on the same page.
My ongoing relationship with my current property manager has allowed me to avoid pitfalls that would no doubt have been taking cash right out of my pocket.Thanks BigV
Property management is probably the most crucial when buying out of state or country. I couldn’t agree more :)
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Thanks and have a great day
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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